First Principles Thinking
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First Principles Thinking is a problem-solving approach that breaks down complex ideas into their most basic, fundamental truths and then builds up from there, rather than relying on assumptions, traditions, or analogies.
Core Idea:
Instead of saying, “This is how it’s always been done,” you ask:
“What are the essential truths I know for sure? What happens if I build from there?”
3 Steps to Apply First Principles Thinking:
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Identify Assumptions
Question everything you’re taking for granted.
E.g.: “Do customers really need a physical store?” -
Break Down to Fundamentals
Find the basic facts that are always true.
E.g.: “Customers need convenience, trust, and a way to receive products.” -
Rebuild from the Ground Up
Reimagine solutions using only the essentials.
E.g.: “Could a trusted, mobile-first platform meet those needs better?”
Example (Famous Use Case):
Elon Musk applied this to rethink the cost of rockets:
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Assumption: Space travel is expensive because rockets are expensive.
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First Principle: Rockets are just made of aluminum, carbon fiber, etc.
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Result: Build reusable rockets from raw materials, reducing cost dramatically.
Why Use It in Business?
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Sparks innovation instead of copying competitors
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Cuts through complexity and clutter
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Leads to leaner, more logical strategies
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